Merton leases on domestic properties are gradually losing value. if your lease has approximately ninety years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be due. Flat owners in Merton will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In certain situations you may not be entitled. There are also strict timetables and steps to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold premises in Merton with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Halifax | |
| National Westminster Bank | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The lawyers that we work with handle Merton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last year Finley, came precariously close to the eighty-year mark with the lease on his leasehold flat in Merton. Having bought his property 18 years previously, the length of the lease was of little relevance. As luck would have it, it dawned on him that he would soon be paying an inflated amount for a lease extension. Finley arranged for a lease extension just in the nick of time in March. Finley and the freeholder via the managing agents subsequently agreed on the final figure of £5,500 . If the lease had gone below eighty years, the sum would have increased by at least £850.
Last Autumn we were phoned by Mr and Mrs. Y Gómez , who moved into a one bedroom apartment in Merton in February 2010. The dilemma was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Identical homes in Merton with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed quarterly. The lease terminated on 18 October 2105. Considering the 79 years left we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus fees.
Last month we were called by Dr R Kelly , who owned a recently refurbished flat in Merton in February 1995. The question was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparable premises in Merton with an extended lease were valued about £198,400. The average amount of ground rent was £65 invoiced every twelve months. The lease finished in 2085. Considering the 59 years unexpired we estimated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 not including fees.